Gov. Paul LePage’s proposed state budget would create – and force Portland to find a way to close – a city budget gap of $5.2 million next year and $9.5 million the following year, according to city estimates.

Acting City Manager Sheila Hill-Christian presented city councilors Monday with figures reflecting how Portland would be affected by the policy changes proposed in the governor’s $6.3 billion biennial budget, including altering the formula for General Assistance reimbursements and allowing municipalities to collect property taxes from nonprofits.

“It seems to be that when this settles out we might be in a position where we just have to level with the people of the city of Portland,” said Councilor Jon Hinck, referring to a need to increase property taxes. “We are going to face a challenge financially bequeathed to us by the state of Maine.”

Hill-Christian said the figures presented Monday were the city’s “best-guess estimate” for the potential impact on the city and that the staff is preparing for the “worst case.”

Mayor Michael Brennan said, in his opinion, the likelihood of the governor’s proposed changes to General Assistance and nonprofit property taxes passing are “not high.”

The state now reimburses the city for 50 percent of General Assistance expenditures up to $2.3 million, then 90 percent after that. The governor is proposing to reimburse the city for 90 percent of expenditures up to $3.1 million, then 10 percent.

The city is estimating that would translate into an annual loss of $7.4 million in General Assistance reimbursements.

“That, to me, would be the big unknown,” Brennan said.

On the flip side, LePage wants municipalities to be able to collect taxes on nonprofit property worth $500,000 or higher. That could mean an extra $5.7 million in revenue for the city – a figure that Brennan said he thinks “is low.”

Other anticipated revenue losses would come from the elimination of revenue sharing in fiscal year 2016-17, which would result in a $4 million funding loss for the city that year, and changes to the business equipment tax reimbursement and the homestead exemption.

The city anticipates losing $3 million in state education funding for each of the next two years, partly because of an increase in the local contribution to teacher retirements.

Hill-Christian said she didn’t have enough information to provide an estimated impact of other changes proposed by the governor, including the collection of a telecommunications excise tax, increased funding for nursing homes and increased costs for county jails.

The city’s budget is $221 million for this fiscal year, which ends June 30. Councilor Ed Suslovic asked, if the city flat-funded its budget, how much the governor’s proposals would affect the property tax rate. The staff could not provide that number Monday but said it would be significant.